Huwebes, Hulyo 25, 2013

CAPITAL RESOURCES



        Capital resources are like the man made resources. Because they are the produced goods that are used as factor inputs for further productivity. It consists of human capital and physical capital.  In human capital, skills and knowledge and quality are the focused of it. While in physical capital, it refers to the equipment  structures, inventories. Okay another thing I learned  is that inventories means stocks. All I know before is that there are "inventory sales" I don't know, I just shop till I drop but don't actually know the true meaning of it. Again, this is the fun parts in economics. So glad I'm learning it.  The next thing is the social overhead capital. Say what? I didn't know this exists before! But now, oh yeah, I can brag about it. This is just so important to learn because we make use of these. These are the public utilities like roads, bridges, ports, railroads and others that are used for transportation. I got interested in this, because I'm enlightened by the importance of the public utilities. Because without it, it will result to slow production and distribution of goods and services by business firms and slow delivery of services by the government! Oh no! No more imported products!! Oh ems, I'm so mean, imported products are more important than the local ones. Uhm no, they're both important but I just like even more the imported products! Oh yes, I think you'll agree too. Because instead of you using your imported phone right now you'll be using myphones, cherry mobile like it's so ewwwyy. Okay, now I'm being mean. But I guess you can see my point right? That social overhead capital is very important or else I wouldn't have my iPhone 5 right now and typing this! Poor me. 

        The Capital means money. It refers to the stock of buildings, equipment and other productive resources conducted by a business firm. Whereas, investment  is the time effort and money that is used or invested. It is also the flow of activity.   

        I learned that private sector and public sector is responsible for expanding the stock of capital. Which means there will be even more investors and investments and more expansions which will benefit the society. Through more employment and of course, the government by more taxes serving on their desks. It's just a chain reaction, just like what Ms. Princess said. See, even though I'm not reciting, I'm very well listening. ;)




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